Stefan Borson: Arsenal owner to match Fulham after £75m loan update

Arsenal owner Stan Kroenke will soon follow in the footsteps of Shahid Khan after the Fulham chief has written off £75million of shareholder loans.

That is the view of finance expert Stefan Borson, who exclusively told Football Insider the trend will continue on the back of the decision in the Manchester City associated party transactions (APT) case.

A Companies House submission on 31 October revealed Khan has written off more than £75million worth of loans by converting them into shares at Craven Cottage.

It comes at a time when shareholder loans are firmly in the spotlight following the independent panel’s decision in the Man City APT case.

The commission ruled that shareholder loans shouldn’t be excluded from the APT rules and the Premier League will now integrate the assessment of those loans into the regulations.

Arsenal owe Kroenke £259million – the third-highest total in the top flight behind Everton’s £451million and Brighton’s £373million.

Arsenal owner Stan Kroenke to convert loans after Man City ruling

Borson insisted it’s not a surprise to see Khan convert his loans into shares ahead of the rule change.

“We don’t know exactly why he has done it,” Borson told Football Insider.

“He has converted a lot of loans before. But ultimately, these shareholder loans are quasi-equity anyway.

“They are loans to the 100 per cent shareholders, so they are not third-party commercial loans and are as good as equity anyway.

“Clearly after the Manchester City APT case, shareholder loans are going to have to be brought into account in terms of PSR and APTs.

“The rules are coming, so it’s not a surprise to see people start to deal with any shareholder debt in this way.

“I think you will find there will be a few more examples coming, Brighton and Arsenal in particular, such that nobody really has very significant shareholder loans to 100 per cent shareholders in the near future.

“The trend has been there for years. It’s just not unusual that people are converting their debt to equity.

“But you will see it continue, especially after the City APT decision.”

In other news, top source has heard ‘whispers’ about Alexander Isak to Arsenal.

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